Article: Global Stocks Slip as Inflation Remains in Focus

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Global Stocks Slip as Inflation Remains in Focus

Patricia Kowsmann and Xie Yu, 31 May 2021

Global stock markets were mixed Monday as investors wrapped up a month of trading dominated by concerns over inflation and the pace of the international economic recovery.

Trading was light with holidays in the U.S. and the U.K. S&P 500 stock futures were little changed Monday.

In Europe, Germany’s DAX index slid 0.2%, dragged by Deutsche Bank shares, which fell 1.6%. The Wall Street Journal reported Sunday that the Federal Reserve told the bank in recent weeks that it is failing to address persistent shortcomings in its anti-money-laundering controls, according to people familiar with the matter. Continue reading “Article: Global Stocks Slip as Inflation Remains in Focus”

Article: Fed Warned Deutsche Bank Over Anti-Money-Laundering Backsliding

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Fed Warned Deutsche Bank Over Anti-Money-Laundering Backsliding

Patricia Kowsmann and Jenny Strasburg, 30 May 2021

The Federal Reserve told Deutsche Bank AG DB 0.40% in recent weeks that the lender is failing to address persistent shortcomings in its anti-money-laundering controls, according to people familiar with the matter.

The Fed’s frustration has escalated to a point that the bank could be fined, the people said.

Deutsche Bank has poured massive resources into addressing repeated shortcomings and penalties related to allowing suspect transactions. The Fed told Deutsche Bank that instead of making progress, the German lender with a large Wall Street presence is backsliding. The regulator has said that some of the anti-money-laundering control problems require immediate attention, according to the people. Continue reading “Article: Fed Warned Deutsche Bank Over Anti-Money-Laundering Backsliding”

Article: Deutsche Bank Avoids Archegos Meltdown, Reports Profit Surge

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Deutsche Bank Avoids Archegos Meltdown, Reports Profit Surge

Patricia Kowsmann, 28 April 2021

Deutsche Bank AG reported its strongest quarter in seven years thanks to activity at its investment bank, while the lender escaped the implosion of Archegos Capital Management that badly hit some rivals.

The news sent Deutsche Bank shares up 10% on Wednesday, their highest level since May 2018. Also helping its bottom line were lower charges on bad loans, as customers seemed to be weathering the pandemic effects better than expected.

The bank benefited from frenzied investor activity in financial markets. Its business advising clients on fundraising and mergers and acquisitions also boomed, as companies repositioned growth plans during the pandemic. A cost-savings plan imposed to turn the lender around following years of bad results is also helping. The bank reported a cost-to-income ratio of 77% compared with 89% a year ago. Continue reading “Article: Deutsche Bank Avoids Archegos Meltdown, Reports Profit Surge”

Article: Major Banks Suspected of Collusion in Bond-Rigging Probe

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Major Banks Suspected of Collusion in Bond-Rigging Probe

Patricia Kowsmann and Margot Patrick, 20 December 2018

The European Commission suspects Deutsche Bank AG , Credit Suisse Group AG, Crédit Agricole SA and another global bank of colluding to manipulate a multi-trillion-dollar government-backed bond market, escalating a long running probe.

The European Union’s executive arm, which opened the investigation almost three years ago, said in a statement Thursday that banks will now lay out their defenses. If found guilty, they could face a fine of up to 10% of their annual world-wide revenue. Continue reading “Article: Major Banks Suspected of Collusion in Bond-Rigging Probe”